Aptorum Group Limited (NASDAQ: APM), a clinical-stage biopharmaceutical company focused on addressing unmet medical needs in oncology, autoimmune, and infectious diseases, today released its business update and financial results for the six months ending June 30, 2024.
Business Update
Aptorum Group and Yoov Group Holding Limited (“Yoov”) had previously been in discussions for a reverse takeover (RTO) transaction. However, due to significant uncertainty in market conditions and the challenges in securing required funding, the Aptorum Board has decided to terminate the deal. As a result, the anticipated RTO with Yoov has been called off. Despite this setback, the company remains committed to exploring alternative business combination opportunities that could enhance shareholder value.
“We invested substantial time and resources into the due diligence and transaction preparation with Yoov. However, given the current market conditions and funding uncertainty, our Board believes it is no longer in the best interest of our shareholders to proceed with this transaction. We will continue to seek other business opportunities,” said Mr. Ian Huen, CEO of Aptorum Group.
Financial Results for the Six Months Ended June 30, 2024
- Net Loss: Aptorum reported a net loss of $2.7 million for the first half of 2024, compared to a net loss of $6.6 million for the same period in 2023. The reduced loss was largely due to significant cost-cutting measures and a focus on the RTO process.
- Research and Development (R&D) Expenses: R&D expenses decreased to $2.0 million from $3.2 million in 2023. This reduction was attributed to the company pausing most of its R&D activities while focusing on the Merger Agreement, which was later terminated in the fourth quarter of 2024. Following the termination, R&D efforts remain suspended as the company searches for new opportunities.
- General and Administrative (G&A) Expenses: G&A expenses dropped to $0.3 million, down from $1.3 million in 2023. This reduction was due to the company’s streamlined operations as it prepared for the terminated merger.
- Legal and Professional Fees: Legal fees decreased to $0.4 million in the first half of 2024 from $1.7 million in 2023, reflecting the absence of non-routine activities like the reverse stock split and amendments to the company’s articles of association.
- Cash Position: As of June 30, 2024, the company had approximately $0.8 million in cash and restricted cash, with total equity standing at $13.2 million.
Balance Sheet Highlights as of June 30, 2024
Aptorum’s total assets amounted to $17.7 million, with liabilities totaling $4.5 million. The company’s equity totaled $13.2 million, a decrease from $15.4 million at the end of 2023.
Condensed Statement of Operations
The company posted a net loss of $2.7 million for the first half of 2024, a significant reduction from the $6.6 million loss in the same period in 2023. This reduction was primarily due to lower operating expenses, including research and development and general administrative costs.
Net Loss Per Share
The net loss per share for the first half of 2024 was $0.50, compared to $1.43 in 2023. The company had a weighted average of 5.34 million shares outstanding in 2024, up from 3.85 million in the same period of 2023.
Other Key Financial Metrics
- Revenue: No revenue was reported for the first half of 2024, compared to $431,378 in the same period of 2023.
- Other Income: Other income for the period amounted to $209,620, driven by sundry income, while interest expenses and loss on marketable securities contributed to a net loss.
Outlook
Looking ahead, Aptorum Group will continue to assess opportunities to create shareholder value and explore new avenues for growth. The company is also focusing on its ongoing partnerships, including the co-development of the PathsDx Test for pathogen detection, alongside Accelerate Technologies Pte Ltd, a commercialization arm of Singapore’s Agency for Science, Technology, and Research.
About Aptorum Group
Aptorum Group Limited (Nasdaq: APM) is a clinical-stage biopharmaceutical company focused on the discovery, development, and commercialization of therapeutic assets to address diseases with unmet medical needs, particularly in oncology and infectious diseases. The company is also involved in the co-development of PathsDx, a rapid pathogen identification and detection diagnostic technology.
